Tech Has Just Underperformed Three 'Boring' Sectors

Folks, something is changing in the market... If you've been paying attention, you know that one thing has defined this bull market. That's high-flying tech stocks. [Chaikin PowerFeed]( Tech Has Just Underperformed Three 'Boring' Sectors By Vic Lederman, editorial director, Chaikin Analytics Folks, something is changing in the market... If you've been paying attention, you know that one thing has defined this bull market. That's high-flying tech stocks. Over the past six months, tech stocks – as measured by the Technology Select Sector SPDR Fund (XLK) – have soared more than 26%. And that same fund is up more than 44% over the past year. Those are staggering returns. But over the past 30 days, something has changed. Another group of sectors has outperformed tech. Maybe you've seen signs of this brewing in the news. Stories of more layoffs in the space and political "tech wars" have been bubbling to the surface. Just over the weekend, China announced it would transition its government computers away from Intel's (INTC) and Advanced Micro Devices' (AMD) chips. And the U.S. is already limiting the export of Nvidia's AI-related chips to China. In that context, it's no surprise that even the broad market S&P 500 Index has outperformed tech over the past 30 days. Now, I'm certainly not saying this is the end of tech. But it's significant. And it's something we want to take a closer look at... Recommended Links: [TODAY: This Historic Market Anomaly Will NOT Last Long]( Today at 10 a.m. Eastern time, two independent financial research powerhouses will share the stage... to explain why a mathematical inversion in ONE corner of the stock market now presents a 1-in-20-year opportunity we may never see again. Stansberry Research founder, Porter Stansberry, and Altimetry founder, Joel Litman, say it's the most valuable information you will ever get – for FREE – in your lifetime. [Click here before 10 a.m. Eastern time for details](. [Bitcoin Dollar Warning]( There's a strange new situation unfolding behind the scenes in the U.S. banking system. It's connected to bitcoin and other leading cryptos... but it could have much wider implications for the U.S. dollar and American banking system. The Federal Reserve, U.S. Treasury, and 41 major banks are all involved – and plotting radical changes for America's money system. [Here's the full story](. Today, let's look at the three top-performing sectors over the past 30 days. Each of these has outperformed tech. Specifically, tech stocks are up about 2% over the past 30 days. That's fine. But it's not the red-hot performance we've seen in recent months. Now, a group of very specific sectors is outperforming. Take a look... Sector Exchange-Traded Fund 30-Day Return Energy Energy Select Sector SPDR Fund (XLE) 8.1% Materials Materials Select Sector SPDR Fund (XLB) 5.9% Industrials Industrial Select Sector SPDR Fund (XLI) 3.6% Folks, this should catch your attention. The top-performing sectors over the past 30 days were downright boring. I'm talking about energy, materials, and industrials. That's nothing like the flashier sectors – such as tech, communications, or financials. This is important because it means that, at least over the past month, the market got defensive. And it pivoted into more "solid" or tangible sectors. In fact, even small caps performed better than tech stocks. The iShares Russell 2000 Fund (IWM) gained nearly 3% in the past 30 days. Now, you could see this as a "run for the hills" moment. But I don't. Put simply, a "broadening out" of our bull market would be healthy. After all, it's unrealistic to expect a handful of tech stocks to carry the entire stock market forward. Does it mean I'm going to go pouring my money into energy? No, not yet. The past month's top-performing sector still shows a number of warning signs... XLE is our measure of the energy sector. The fund holds many recognizable names. But the top three holdings make up more than 48% of the fund. These are ExxonMobil (XOM), Chevron (CVX), and ConocoPhillips (COP). Right now, none of them earn a "bullish" rating in the Power Gauge. And of the 23 rated stocks in XLE, our system only gives two of them a "bullish" or better rating. Take a look... [Chaikin PowerFeed] So, we saw some market churn last month. And investors pivoted to some historically defensive sectors. Again, energy was the top-performing sector. But that doesn't mean we've seen a full-blown transition into that space yet. And as you can see, the Power Gauge currently assigns a "neutral" rating to XLE. That means this is something we want to watch closely. Of course, I'm not hitting the panic button on tech. But I'll be paying attention to how it performs ahead against energy and those other, more "boring" sectors. Good investing, Vic Lederman Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -0.4% 13 17 0 S&P 500 -0.28% 184 256 57 Nasdaq -0.36% 38 50 11 Small Caps +0.21% 505 1026 377 Bonds -0.5% — According to the Chaikin Power Bar, Large Cap stocks and Small Cap stocks are Bullish. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Energy +2.33% Industrials +2.07% Discretionary +1.73% Utilities +1.47% Information Technology +1.06% Financial +1.05% Communication +1.04% Materials +0.84% Health Care +0.29% Staples -0.04% Real Estate -0.77% * * * * Industry Focus Aerospace & Defense Services 11 18 5 Over the past 6 months, the Aerospace & Defense subsector (XAR) has outperformed the S&P 500 by +3.41%. Its Power Bar ratio, which measures future potential, is Strong, with more Bullish than Bearish stocks. It is currently ranked #11 of 21 subsectors and has moved up 1 slot over the past week. Top Stocks [rating] HII Huntington Ingalls I [rating] CW Curtiss-Wright Corpo [rating] NPK National Presto Indu * * * * Top Movers Gainers [rating] SMCI +7.2% [rating] MU +6.28% [rating] DXCM +5.2% [rating] CEG +5.06% [rating] MRNA +4.7% Losers [rating] TTWO -4.15% [rating] STE -3.64% [rating] DAY -3.54% [rating] LULU -3.54% [rating] UAL -3.4% * * * * Earnings Report Reporting Today Rating Before Open After Close SNX MU MKC CNXC, NCNO GME No earnings reporting today. Earnings Surprises No significant Earnings Surprises in the Russell 3000. * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. You’re receiving this e-mail at {EMAIL}. 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